Shafaq News
Brent oilprices rose 2% to more than $90 per barrel on Monday, as escalating U.S.-Iranhostilities in the Middle East restricted oil shipments through the Strait ofHormuz.
Brent crudefutures climbed $2.09, or 2.37%, to $90.19 by 0241 GMT, touching the highestsince June 11, extending gains after rising 15.9% last week, its biggest weeklygain since April.
U.S. West TexasIntermediate crude was at $84.20 a barrel, up $1.71, or 2.07%, the loftiestsince June 12. Front-month prices gained 15.5% last week, the largest weeklyascent since early March.
The Middle East conflict escalated over the weekend with the U.S. conducting aninth straight night of attacks against Iran, while U.S. allies Kuwait andBahrain reported more Iranian strikes.
"ICE Brentbroke above $90 per barrel this morning with no let-up in the escalation inthe Gulf," said ING analysts in a note on Monday.
"The U.S.and Iran continue to exchange strikes, which are proving to be deadly for bothsides. If this escalation goes unchecked, we could return to an environment ofwide-scale attacks across the Gulf."
The IslamicRevolutionary Guard Corps said on Monday that two oil tankers had exploded andbeen immobilised after attempting to transit what it described as an unsafesouthern route through the Strait of Hormuz, alleging they had been encouraged by the U.S. military to use the passage.
Reuters couldnot immediately verify the incident.
In recent daysboth sides have taken aim at shipping traffic, with the U.S. saying it isenforcing a naval blockade on Iranian ports, and Iran saying it targets vesselsviolating its rules on navigating the Strait of Hormuz, which usually handlesone-fifth of global oil trade.
A vessel was onfire northwest of Oman's Kumzar, the United Kingdom Maritime Trade Operationsagency said early on Monday.
"Thecoming days and weeks will provide a clearer picture of the sustainable levelof oil exports from the region under renewed dual blockades," Barclaysanalyst Amarpreet Singh said in a note.
"As thingsstand, we think oil markets are still too complacent about the potentialfallout for inventories, which, unlike at the beginning of the war, are at thetightest of the past five years."
Four vesselsmade the transit through the Strait of Hormuz on Sunday, down from eight in theprevious day, LSEG data showed. At least three oil products tankersand one Very Large Crude Carrier, have entered the strait since Friday to load oil, the data showed.
(Reuters)
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